Crime & Courts

1MDB, SRC file suits against Najib, others to recover RM96.6 billion

KUALA LUMPUR: A combined total of 22 civil suits have been filed by 1Malaysia Development Bhd (1MDB) and its former subsidiary SRC International Sdn Bhd (SRC) against various parties, including former prime minister Datuk Seri Najib Razak, to recover RM96.6 billion in assets.

In a statement today, the Finance Ministry said six of the 22 writs were filed by 1MDB, while the remaining 16 were by SRC.

The civil suits were filed as an effort by both entities to recover their assets with a combined total in excess of RM96.6 billion including approximately RM300 million against various local parties.

The writs filed by 1MDB are against a total of nine entities -including two foreign financial institutions, and 25 individuals.

They are being sued for various wrongdoings, including breach of contractual, statutory, common law and fiduciary duties; breach of trust; fraud; conspiracy to defraud; fraudulent misrepresentation; fraudulent breach of duties and trust; fraudulent concealment; fraudulent misappropriation; dishonest assistance in misappropriation of funds; negligence, knowing receipt and unjust enrichment.

Meanwhile, the writs filed by SRC are against a total of 15 individuals and 8 entities for various wrongdoings including abuse of power, breach of fiduciary duties in public office, breach of trust, conspiracy, dishonest assistance, fraudulent breach of duties, knowing receipt, misfeasance and wrongful conversion.

"1MDB and SRC contend that these entities and/or individuals have been unjustly enriched by wrongfully receiving monies from 1MDB or SRC," the statement read.

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz gave an assurance that the government will ensure that justice was upheld, adding that guilty parties will be made fully accountable for the wrongdoings they have caused to the country.

"Following significant and successful settlements with Goldman Sachs, AmBank Group and Deloitte PLT, the government's recovery efforts are now focused on pursuing other wrongdoers who have caused losses to 1MDB and/or SRC during the execution of their duties, as parties directly or indirectly involved in 1MDB and/or SRC's various operations and transactions," he said.

It was reported that Malaysia had received RM10.5 billion from Goldman Sachs in August 2020 with a further asset recovery guarantee of RM5.88 billion.

Malaysia is also expected to receive RM2.83 billion from the Ambank Group and RM336 million (USD80 million) from Deloitte PLT.

According to the Finance Ministry, all proceeds from the 1MDB asset recovery efforts including any future settlements will be deposited into the Asset Recovery Trust Account under the custody of the Accountant General's Department of Malaysia.

"These settlements will not affect or compromise Malaysia's claims against other wrongdoers for the losses caused to 1MDB and SRC, and they will continue to be pursued through both the criminal and civil justice systems.

"The Ministry of Finance would like to thank the Attorney General's Chambers, the Securities Commission Malaysia, Bank Negara Malaysia, the Royal Malaysian Police Force, the National Anti-Financial Crime Centre, the Malaysian Anti-Corruption Commission and the National Centre for Governance, Integrity and Anti-Corruption for their joint effort in bringing these wrongdoers to justice and recovering what rightfully belongs to the Malaysian people."

While the Finance Ministry did not name those being sued, it was reported that Najib's name appeared prominently in two of the 16 civil suits by SRC.

According to The Edge report, the first suit was for breach of fiduciary duties and the second for receiving RM42 million, for which he has already been found guilty and convicted in July last year.

Najib was sentenced to 12 years' jail and RM210 million fine for abuse of power, criminal breach of trust, and money laundering involving RM42 million from SRC.

Najib is appealing the case and the matter is now at the Court of Appeal.

His 1MDB-related charges are still being tried at the High Court.

Aside from Najib, other defendants mentioned were former Treasury Secretary General Tan Sri Mohd Irwan Serigar, former 1MDB chief executive Datuk Shahrol Azral Ibrahim Halmi and Arul Kanda Kandasamy.

Fugitive businessman Low Taek Jho @ Jho Low, his father Tan Sri Low Hock Peng, his sister Low May Lin and accomplice Eric Tan Kim Loong and Najib's stepson Riza Aziz were also named as defendants.

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